HSI Rises, Nongfu Spring Surges On Debut

Hong Kong stocks finished in positive territory on Tuesday, clawing back some of their recent losses on bargain buying, with investors cheered by plans by the government to further ease virus-containment measures.

The Hang Seng Index edged up 0.14 percent, or 34 points, to 24,624.

Mainland beverages producer Nongfu Spring had a strong debut on the local stock market, finishing 54 percent above its IPO price at HK$33.1.

Shares had soared by more than 80 percent above its offer price as trading began.

Across the border, the benchmark Shanghai Composite Index rose 0.72 percent, or 23 points, to close at 3,316, while the Shenzhen Composite Index on China's second exchange gained 0.38 percent, or 8 points, to 2,248.

Asian shares were generally higher.

Japan's benchmark Nikkei 225 gained 0.8 percent to finish at 23,274. South Korea's Kospi gained 0.6 percent to 2,399. And Australia's S&P/ASX 200 added 1.1 percent to 6,007.

“Traders and investors alike may slowly but surely come around to the idea that last week’s market rout was tech sector-specific, rather than any real change in underlying sentiment,” said Stephen Innes, chief global markets strategist at AxiCorp.

“There was nothing ‘fundamental’ behind last week’s equity sell-off, but it will most certainly take a while to clear all the option-market after-shocks," he said.

Also on Tuesday, the Japanese government reported that the nation’s economy shrank at a record, even worse rate in the April-June quarter than initially estimated. The Cabinet Office reported Japan’s seasonally adjusted real gross domestic product contracted at an annualised rate of 28.1 percent, worse than the 27.8 percent figure given last month.

The coronavirus pandemic, which has people staying home, restaurants and stores empty or closing, and travel and tourism nose-diving, has hurt all the world’s economies and many companies. But it has slammed Japan’s export-reliant economy. (AFP, AP)